Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Income Before Income Tax, Domestic and Foreign [Table Text Block]

The components of International Paper’s earnings from continuing operations before income taxes and equity earnings by taxing jurisdiction were as follows:


In millions	2024		2023		2022
Earnings (loss)
U.S.	$	(140)	$	129	$	1,469
Non-U.S.	287		253		42
Earnings (loss) from continuing operations before income taxes and equity earnings (losses)	$	147	$	382	$	1,511

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes from continuing operations (excluding noncontrolling interests) by taxing jurisdiction was as follows:


In millions	2024		2023		2022
Current tax provision (benefit)
U.S. federal	$	(4)	$	157	$	454
U.S. state and local	20		16		56
Non-U.S.	42		42		27
	$	58	$	215	$	537
Deferred tax provision (benefit)
U.S. federal	$	(367)	$	(164)	$	(775)
U.S. state and local	(98)		3		(39)
Non-U.S.	(8)		5		41
	$	(473)	$	(156)	$	(773)
Income tax provision (benefit)	$	(415)	$	59	$	(236)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income tax expense using the statutory U.S. income tax rate compared with the actual income tax provision follows:


In millions	2024			2023			2022
Earnings (loss) from continuing operations before income taxes and equity earnings	$	147		$	382		$	1,511
Statutory U.S. income tax rate	21		%	21		%	21		%
Tax expense (benefit) using statutory U.S. income tax rate	31			80			317
State and local income taxes	(62)			2			44
Impact of rate differential on non-U.S. permanent differences and earnings	(26)			(10)			1
Foreign valuation allowance	—			—			45
Tax expense (benefit) on exchange of Sylvamo shares	—			—			(56)
Non-taxable income	(4)			(2)			(2)
Non-deductible business expenses	21			7			2
Non-deductible impairments	—			—			16
Non-deductible compensation	8			7			13
Tax audits	—			(4)			6
Timber Monetization Audit Settlement	—			—			(604)
Foreign derived intangible income deduction	—			2			(8)
US tax on non-U.S. earnings (GILTI and Subpart F)	32			—			27
Foreign tax credits	7			8			8
General business and other tax credits	(31)			(38)			(43)
Tax expense (benefit) on equity earnings	(1)			(4)			(1)
Legal entity restructuring expense (benefit)	(391)			4			—
Other, net	1			7			(1)
Income tax provision (benefit)	$	(415)		$	59		$	(236)
Effective income tax rate	(282)		%	15		%	(16)		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The tax effects of significant temporary differences, representing deferred income tax assets and liabilities at December 31, 2024 and 2023, were as follows:


In millions	2024		2023
Deferred income tax assets:
Postretirement benefit accruals	$	72	$	67
Pension obligations	63		61
Tax credits	183		182
Net operating and capital loss carryforwards	1,181		699
Compensation reserves	224		146
Lease obligations	112		116
Environmental reserves	131		114
Investments	4		—
Research and development expenditures	240		162
Other	203		157
Gross deferred income tax assets	$	2,413	$	1,704
Less: valuation allowance (a)	(1,201)		(848)
Net deferred income tax asset	$	1,212	$	856
Deferred income tax liabilities:
Intangibles	$	(133)	$	(141)
Investments	—		3
Right of use assets	(112)		(116)
Plants, properties and equipment	(1,528)		(1,650)
Forestlands, related installment sales, and investment in subsidiary	(486)		(485)
Gross deferred income tax liabilities	$	(2,259)	$	(2,389)
Net deferred income tax liability	$	(1,047)	$	(1,533)

(a) The net change in the total valuation allowance for the years ended December 31, 2024 and 2023 was an increase of $353 million and a increase of $171 million, respectively.

Schedule of Unrecognized Tax Benefits Rollforward [Table Text Block]

A reconciliation of the beginning and ending amount of unrecognized tax benefits recorded in Other Liabilities in the accompanying consolidated balance

sheet for the years ended December 31, 2024, 2023 and 2022 is as follows:


In millions	2024		2023		2022
Balance at January 1	$	(173)	$	(177)	$	(166)
(Additions) reductions for tax positions related to current year	(10)		(13)		(7)
(Additions) for tax positions related to prior years	(40)		(11)		(10)
Reductions for tax positions related to prior years	7		1		3
Settlements	4		17		1
Expiration of statutes of limitations	6		11		1
Currency translation adjustment	2		(1)		1
Balance at December 31	$	(204)	$	(173)	$	(177)

Summary of Operating Loss and Tax Credit Carryforwards [Table Text Block]

The following details the scheduled expiration dates of the Company’s net operating loss and income tax credit and capital loss carryforwards:


In millions	2025 Through 2034		2035 Through 2044		Indefinite		Total
U.S. federal and non-U.S. NOLs	$	3	$	603	$	397	$	1,003
State taxing jurisdiction NOLs (a)	28		9		—		37
U.S. federal, non- U.S. and state tax credit carryforwards (a)	73		14		96		183
U.S. federal and state capital loss carryforwards (a)	141		—		—		141
Total	$	245	$	626	$	493	$	1,364
Less: valuation allowance (a)	(58)		(612)		(449)		(1,119)
Total, net	$	187	$	14	$	44	$	245

(a) State amounts are presented net of federal benefit.